Fixing Of Minimum Import Price Has Positively Impacted The Black Pepper Market In India

Posted on: May-2018 | By: Pro Market Reasearch | Chemicals & Materials

An official of the commerce ministry said that to overcome the problem of farmers, the government has accepted the application of the Spices Board to make the minimum import price of pepper Rs 500 per kilogram. The official said, “The new crop of black pepper is ready. In such a situation, fixing the minimum import price will improve the falling prices sharply.”

The majority of the countries producing pepper are from the Asian region. Exporters of these countries supply black pepper in India through Sri Lanka to get a discount on import duty. They have to pay less duty for sending goods to India through Sri Lanka through treaties such as the South Asian Free Trade Area (SAFTA) and India-Sri Lanka's FTA (ISLFTA). The organization of farmers producing black pepper was also demanding the government to fix the minimum import price for a long time to curb import of cheap imports. In this connection, Karnataka Chief Minister Siddaramaiah had also recently met Commerce Minister Suresh Prabhu. The largest cultivation of black pepper in the country is in two major states of southern India, Karnataka, and Kerala.

On the other government creating favorable policies for the farmers in terms of crop insurance, subsidies and many others are also motivating farmers to take over spice farming. This has resulted in the massive production of spices especially the black pepper, resulting in growth of black pepper market globally.

On the other hand, unpredictable climatic changes have, to some extent, controlled the cultivation of spices.